Canada's Trade Deficit Widens in June to C$3.60 Billion

Canada's trade deficit unexpectedly widened in June from the previous month to hit the fourth-biggest on record, as exports fell steeply on lower shipments of precious metals and energy.

The report marks a rare setback for the Canadian economy, which has been on a roll over the past year -- prompting the Bank of Canada to raise its benchmark rate last month for the first time in seven years on growing confidence on the outlook.

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Canada's merchandise trade deficit in June grew to a seasonally adjusted 3.60 billion Canadian dollars ($2.86 billion), Statistics Canada said Friday, compared with a revised C$1.36 billion shortfall in the previous month. Markets were anticipating a C$1.25 billion trade shortfall in June, according to economists at Royal Bank of Canada.

Canada's monthly trade data covers the export and import of goods, and doesn't include services.

In June, exports declined by a hefty 4.3% to C$46.51 billion, following three straight monthly record highs. On a one-year basis, exports jumped 12.4%.